PayPal PoS Being Tested by Office Supply Giant (EBAY)
Internet retail giant eBay (Nasdaq: EBAY) is continuing with efforts to expand it's PayPal unit, and news Monday has one office supply company testing out its new system.
According to Reuters Monday, Office Depot (NYSE: ODP) is said to be currently evaluating PayPal's new point-of-sale (PoS) system in several locations. North American president for Office Depot, Kevin Peters, said the company will take time to evaluate the new payment system before any nationwide roll-out happens.
PayPal also recently announced its PoS is being tested in 51 Home Depot (NYSE: HD) locations, and is aiming to have its service in 20 major retailers by the end of 2012.
With more than 100 million users, PayPal is the giant in the online payment industry. But expansion into brick-and-mortar locations will only add to the user base.
Competition from card companies like Visa (NYSE: V), MasterCard (NYSE: MA), and American Express (NYSE: AXP) -- not to mention Google (Nasdaq: GOOG) -- is also present and growing.
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According to Reuters Monday, Office Depot (NYSE: ODP) is said to be currently evaluating PayPal's new point-of-sale (PoS) system in several locations. North American president for Office Depot, Kevin Peters, said the company will take time to evaluate the new payment system before any nationwide roll-out happens.
PayPal also recently announced its PoS is being tested in 51 Home Depot (NYSE: HD) locations, and is aiming to have its service in 20 major retailers by the end of 2012.
With more than 100 million users, PayPal is the giant in the online payment industry. But expansion into brick-and-mortar locations will only add to the user base.
Competition from card companies like Visa (NYSE: V), MasterCard (NYSE: MA), and American Express (NYSE: AXP) -- not to mention Google (Nasdaq: GOOG) -- is also present and growing.
Get immediate access to market moving news and alerts with StreetInsider.com Premium - FREE TRIAL!
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POS
Jay Gould on Feb 15, 2012 06:16 PMMark as Spam
PayPal's plan of POS attack is to entice merchants with below-cost credit and debit card processing, which is an offer no retailer will refuse. The company will subsidize its losses from the card transactions with the very high-margin profits it enjoys when its users fund the sales amount from their bank accounts.
On the other hand, whether the consumers will be won over is another question altogether. If it is to stand a chance, PayPal will need to make the checkout process as uneventful as possible. As it is, the customer is asked to enter his or her cell phone number, in addition to a PIN, before the transaction can be completed. That's unnecessary and excessive. I would never give my cell phone number to a merchant (or PayPal) to protect myself against spam, whatever assurances to the contrary they may give me. And I'm far from alone.
Still, given the amazing deal that retailers get out of it, I like PayPal's chances. http://blog.unibulmerchantservices.com/paypal-is-coming-to-your-grocery-store